Problem
In a section 351 exchange, Todd transfers assets to X Corp. in exchange for all of X's stock. In addition, X assumes a liability for $10,000 of accounts payable, which arose out of the operation of the business Todd transferred to X, and $2,000 of Todd's personal liabilities. No bona fide business purpose is found to exist with respect to the $2,000 liability assumption. How much boot, if any, is Todd deemed to receive on the exchange?
$1,000
$2,000
$10,000
$12,000.
The response must include a reference list. Using one-inch margins, double-space, Times New Roman 12 pnt font and APA style of writing and citations.